Mgt2 - Assessment Task 1

SAN MIGUEL, JAMES VINCENT C.
2- BSAIS
Analyze the case in Lesson 1. Use the following format.

Opening Case: Google’s Steep Learning Curve in China
I. Case Summary
Given that the internet brought several changes and development in building the today’s
society, it was very undoubtful that many companies especially search engine companies aspire
to expand their business in a global competitive market. Google Inc. to be exact cross borders
easily and profitably with little constraint. However, with few exceptions, cross-border business
ventures always seem to challenge even the most able of competitors, Internet-based or not.
Some new international ventures succeed, while many others fail. But in every venture the
managers involved can and do learn something new. Google Inc.’s learning curve in China is a
case in point.
Chinese-language website was announced to be opened in 2006 by the Google Inc
amidst of the great fanfare. It was a great opportunity for the business to conduct as the 94
million households will further penetrate the internet access. The Google service was outside
the China boarders so it was first slow and unreliable. In the consecutive years, Chinese ISP
restricted some content and take complex filtering to each. Given that the company strives to
have a bigger operation and influence, they believe that staying outside the borders will diminish
their service. Instead, they come up with the idea of creating a real operation inside China to
enhance their service to Chinese people.
Some ethical issues were raised as the operation begun. Hardline censorship rules
regarding the internet were insisted by Chinese authorities believing that some of the content
mighty corrupt the nation’s youth. Such content that was found threatening the state security,
damaging nations glory, disturbing social order and infringement on other’s legitimate rights was
banned. Google however pointed out that their license was just to set up a representative office
in Beijing and no more than that. Google likewise sidestepped the ethical questions by stating it
couldn’t address the issues until it was fully operational in China and knew exactly what the
situation was.
Google appointed Dr. Kai-Fu Lee to lead the company’s new China effort. He opened
the Beijing office and announced that the company would be introducing a new version of its
search engine for the Chinese market. Google’s representatives explained that in order to obey
China’s censorship laws, the company had agreed to remove any websites disapproved of by
the Chinese government from the search results it would display. But the decision didn’t go well
over the United States. The company’s stock fell, and protesters waved placards outside the
company’s headquarters in Mountain View, California. Google wasn’t the only American
technology company to run aground in China during those months, nor was it the worst
offender. However, Google’s executives were supposed to be different; given their lofty motto,
they were supposed to be a cut above the rest.
In 2010, Google announced that they will no longer censor search results on its Chinese
service. The decision followed a 5 cyberattack that it believes was aimed at gathering
information on Chinese human rights activists. Google’s announcement led to speculation
whether Google would close its offices in China or would close Google.cn. Human rights
activists cheered Google’s move, while business pundits speculated on the possibly huge
financial costs that would result from losing access to one of the world’s largest and fastest-
growing consumer markets. Google experience cyberattacks of varying degrees on a regular
basis that results in theft of intellectual property from Google.
Reviewing the business operation in China has been very hard as will have potentially
far-reaching consequences. They ensure that the move was driven by the executives and has
nothing to do with the employees in China who are just working hard to make Google.cn the
success it is today. Like most firms that venture out of their home markets, Google’s
experiences in China and other foreign markets have driven the company to reassess how it
does business in countries with distinctly different laws.
II. Case Problem

Establishing Google cn. Inside China was a great issue as the Chinese government
keenly has censorship rules. Google however struggles to maintain the inside office as it will
contribute to a great loss in their stock market.
III. Case Facts
 Internet businesses planned to expand and exceed beyond borders of high-

earning nation
 Google company introduced a Chinese-language website in China.
 They built an inside office in Beijing for better performance and easy and reliable
internet access.
 Chinese authorities implement hardline censorship rules regarding the internet
believing that some of the content mighty corrupt the nation’s youth
 . Google’s representatives explained that in order to obey China’s censorship
laws, the company had agreed to remove any websites disapproved of by the
Chinese government from the search results it would display
 The decision didn’t go well with the company executives.
 In 2010, Google announced that they will no longer censor search results on its
Chinese service
 Threats and cyberattacks followed the said issue.
IV. Alternative Courses of Action
Google company cannot afford not to conduct business in China especially the operation
had just started. China being a top-earning nation in the world and has stable economy, they
might contribute a lot in the company. However, given the current situation, the company must
find a way in order to maintain their operation inside the country. The best way is to establish a
friendly-internet browsing wherein the beliefs and social orders of the nation will not be put in
danger. Google must continue to eradicate and censored those that may be threat in to the
nation’s security. It would be also helpful if Google company as well as the Chinese authorities
will join hands to have a strict monitoring regarding the issue.
V. Evaluation of Alternatives and Solution to the Problem

People in China as well as the stakeholders and executives of Google company would
be greatly affected if the operation inside the country has been shut down. Internet being the
most indispensable tool to connect to people across the globe and provide a better access to
knowledge and technology is a must for every individual nowadays. Internet service providers
nowadays should be held responsible for giving a better and safe browsing.
VI. Recommendation
Providing a Chinese language website wouldn’t be that easy. But just like the goal of
every internet service provider that is to give and establish a reliable internet browsing, google
must also finds it way in order not to lose the world’s largest and fastest-growing consumer
markets.
VII. Conclusion
Being in the line of international businesses, Google company strives to establish a
place in today’s growing market economy that is also a great factor in the globalization.
Globalization—the shift toward a more interdependent and integrated global economy—
promotes greater opportunities for international business. Such globalization can happen in
terms of markets, where trade barriers are shrinking and consumer preferences are changing.

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SAN MIGUEL, JAMES VINCENT C.

Analyze the case in Lesson 1. Use the following format.

II. Case Problem

III. Case Facts

 Internet businesses planned to expand and exceed beyond borders of high-

V. Evaluation of Alternatives and Solution to the Problem

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